Gift/inheritance tax

[StockBeard]

My parents (who live in France) intend to give myself and my siblings a significant amount of money.

I'm a resident of Japan from a tax perspective. Is there any documentation in English on gift taxation for Japan? I could swear I have seen it before.

The thresholds are different in Japan and France, so I want to make sure we set it the right way so that I declare things correctly (+ bonus if I find legal ways to not get taxes at all, e.g. asking my parents to split the money between me, my wife, and maybe my kids?)

[RetireJapan]

Hi SB

If I recall correctly, you can receive up to 1.1m yen per year tax free. As long as you aren't a PR, you don't have to worry about inheritance tax (or gift tax?) for a few years.

I found this calculator: http://www.asahi-net.or.jp/~zi3h-kwrz/lawygiftcal.html
And this explanation: http://www.asahi-net.or.jp/~zi3h-kwrz/lawygiftcal.html

If it's a substantial amount, I would probably talk to a professional (or the tax office themselves). Let us know how you get on!

[StockBeard]

Thanks!
Also some details here:
http://www.ata-tax.jp/service/index02_en.html

As long as you aren't a PR, you don't have to worry about inheritance tax (or gift tax?) for a few years.

I believe I'm a permanent tax resident. Out of the past 15 years, I've been in Japan for almost 10 years (might be 10 in 2018), and my current address is in Japan. I might still be a resident of the US from a tax perspective for 2017, but certainly will be a PR (from tax perspective) in JP by 2018.

I've seen multiple times recommendations to talk to a professional, and my situation is getting more complex every year. Wondering if people have recommendations of "professionals" in Tokyo used to dealing with cross-country situations?

[eyeswideshut]

If you can split the money between multiple family members you can potentially try to keep the gift under 1.1 million each and thus not incur a tax. I am sure there are other ways around it too: perhaps your parents could create a line of credit with you as a beneficiary you in your home country which you could draw down over time and thus keep the withdrawals under 1.1 mil per year. I am not a tax expert (nor pretend to be one on TV) but seems like a viable strategy.

Accountants that handle overseas finances are expensive (over 200K per filing+ consulting fees). If you PM me I can give you the contact details for the guy I use. His English is not so good but he seems to know his stuff.